THE IPI VIEW
10
September 2015
REASONS TO INVEST IN INDIA
Pic courtesy: Oberoi Realty
From a wide-ranging reform agenda to growing options for home buyers, there are many reasons why India is an attractive destination for non-resident Indians looking for a home
1 REFORMS MATTER
When Prime Minister Narendra Modi swept the Indian election with a massive majority, everyone expected him to wave a magic wand and set right all the country's ills. In a democracy as vast and complex as India's, this hasn't always proved to be the case, but there is no doubt that the new government has set its sights on reform across the economy, announcing major new initiatives and fast-tracking them; even Moody’s Investors Service, when it expressed some disappointment recently over India's pace of reform, observed that "the recent policy changes are slowly taking effect", adding that policies including the ‘Make in India’ campaign, increased foreign direct investment limits in rail infrastructure, defence and insurance, and bills related to mining "will all improve India’s growth outlook”. From streamlined tax regimes to boosting infrastructure and cutting through red tape, Mr. Modi's grasp of the changes that India needs is clear. He also isn't one to take setbacks lightly, so even if the Opposition did manage a Parliament washout over 6
key bills last month, Modi is sure to bounce back. He's here for the long term and is known to be persistent.
2 A STABLE ECONOMY
At 7.5 per cent, India is believed to have the fastest expanding large economy in the world. The World Bank, in an April 28, 2015 update on the country has observed that "India’s government has announced an ambitious development agenda supported by a three-pronged strategy – promoting fast and durable economic growth, especially in manufacturing, together with a stable macro-economic environment; involving states as active development partners; and improving the delivery of social benefits and extending social safety to the elderly and the underprivileged." A recent UNIDOW FIS Intelligence and Research report also maintains a stable outlook on the overall economic prospects of India. The Baseline Profitability Index (BPI) 2015, which ranks countries by their overall attractiveness as targets for
a generic foreign investment, ranks India at the top among 110 countries. “Where exactly should they [investors] put their money? The Baseline Profitability Index (BPI) is back for its third year with some answers, and Narendra Modi’s India is the place to start,” wrote Daniel Altman, creator of the index.
THRUST TOWARDS 3 AINFRASTRUCTURE
If infrastructure is the backbone of a growing economy, then Modi's government is on the right track. USD 1,000 billion investments for the infrastructure sector have been projected in the 12th five year plan (2012-17). In practically every city, infrastructure is getting a major boost with projects for railways, power, ports, bridges, dams, roads and much more. A USD 3.8 billion outlay is planned for highways, with 100,000 kms of national highway expected by the end of 2017. This June, Udhampur in Jammu & Kashmir witnessed www.indiapropertyinsider.in | A
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